Construction
Waiver of Subrogation: How Broad Is It?
January 20th, 2017
Many contractors believe a waiver of subrogation clause protects them from any effort by the owner’s property or builder’s risk carrier to recover damages covered by that insurance. As a federal court decision emphasizes, the protection afforded…
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Generic Reservation of Rights Letters Are Inadequate Notice of Coverage Issues
January 16th, 2017
A common practice in reservation of rights letters has been heavily criticized by the South Carolina Supreme Court. In fact, the court rejected a generic reservation of rights letter. It stated: “It is axiomatic that an insured must be provided suf…
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Construction Analogies to Describe the Scope of Privilege
December 23rd, 2016
Why the discussion of a construction project in a case concerning Facebook? The judge was making an analogy in a dispute as to whether communications between Mark Zuckerberg and Goldman Sachs, channeled through counsel, were privileged. Using a const…
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Categories: Construction
NH Municipalities Cannot Invoke Same Statute of Limitations Protections as the State
December 20th, 2016
Some states recognize the doctrine expressed in English as “no time runs against the king” and in Latin as “nullum tempus occurrit regi.” The doctrine arises from time to time when a state agency seeks to recover against a private company on…
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Pursuing a Performance Bond? Follow the Terms of the Bond
December 15th, 2016
A contractor seeking almost $1 million in claimed cost overruns against a subcontractor’s bond has been reminded that the bond terms must be followed. Or else. The bond required the prime contractor, as bond obligee, to do three things: (a) give no…
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Categories: Construction
An Expensive Lesson About Notice of a Professional A/E Malpractice Claim
December 12th, 2016
The University of Pittsburgh has come out on the losing end of coverage battles with two different malpractice carriers for the architecture firm, The Ballinger Co., hired by Pitt to design a renovation project to Pitt’s Salk Hall (named for Jonas…
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Two Instances Where One Party Could Not Compel a Non-Party to Arbitrate
December 2nd, 2016
The Maryland Court of Special Appeal has recently issued decisions in two separate matters, reaching similar conclusions on very different sets of facts. The outcomes were (1) a related non-party could not be compelled to arbitrate, nor (2) could a p…
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Undocumented Oral Agreement Came Within Scope of Written Arbitration Clause
November 16th, 2016
A hauling company submitted bids for removal of three different types of construction debris, and the parties agreed on and signed a contract covering two of those categories. Later, by oral agreement the third category initially bid on was added at…
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The Long Arm of Construction Trust Fund Law Affects Discharge in Bankruptcy
November 9th, 2016
A corporate manager with control over construction funds, facing personal liability under the NY trust fund law to an unpaid sub and the homeowner for improper diversion of funds, cannot discharge that liability in a personal bankruptcy. Even when th…
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Categories: Construction
Unsuccessful P3 Proposals Are Not Subject to Public Records Laws
November 4th, 2016
In the ordinary course of public project procurement, bids of the competing companies become subject to public review after the bid opening. The Pennsylvania Commonwealth Court (an intermediate appellate court; see more below) recently held that the…
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